With the horrible and tragic flooding that is happening in Louisiana and throughout the Gulf coast, a number of people will likely be visited by a National Flood Adjuster who claims that they will fight to get these victims as much money as possible. However, this comforting speech is far from completely honest, as these adjusters are prone to writing estimates that are significantly less than what is actually needed or owed.
How Adjusters are Paid
Knowing how these adjusters are compensated can help you better understand how the system works and how your claim can be impacted. Adjusters will tell frequently their clients “I get paid more when I write a higher estimate.” This may seem comforting to those who desperately need financial relief, but let’s think about it for a second. If adjusters got paid more to write higher estimates, how would that make any financial sense? The National Flood Insurance Program would be paying out bucket-loads of money to everybody in need, exposing themselves to numerous overpayments. Why would any business, particularly a government institution, set itself up for a program that could be so easily abused? Their budget is not infinite, after all.
In reality, these adjusters are paid based on the total number of estimates they write, but they are required to pay the difference for estimates deemed to be overpaid out of their own pockets. So instead of motivating these adjusters to pay out what may actually be needed, it encourages them to actually underpay flood victims to avoid having to bear a personal financial burden from their own paycheck. There is no penalty for underpaying at all whatsoever. Ultimately, this makes the policyholder the real victim for the second time when they cannot receive the financial relief after a devastating flood.
Get Relief you Need
The devastation that has happened in Louisiana serves as another reminder of how insurance companies can frequently put their own bottom line at the forefront of their business dealings, most often at the expense of their policyholders. When you experience flooding, fire damage, or any other major catastrophe that cause your home to sustain serious damage or a total loss, it’s important to know that you will receive the relief you need from your insurance company. If you feel as though you are being mistreated or shorted by an insurance company acting in bad faith, be sure to have your case reviewed by a Tampa insurance attorney.
At Murray + Murray, our attorneys have stood by those who have been impacted by natural disasters, including hurricanes, floods, fires, and many others. We stand up for the well-being of our clients and represent their best interests against insurance companies who are only concerned with their bottom line. We have received numerous legal honors, including recognition from Super Lawyers, Board Certification from The Florida Bar, and an AV® Preeminent™ rating from Martindale-Hubbell®.
Call Murray + Murray today and let us review your case completely free of charge if you believe your insurance company has not acted in your best interests after a disaster.